Newcrest looks for acquisitions

Its chief executive, Ian Smith, told shareholders at Newcrest's annual meeting in Melbourne that it also planned to increase copper production by 30 per cent while continuing to drive down costs and debt levels.

At a media conference afterwards, Mr Smith said Newcrest had spoken to a number of companies about potential gold and copper projects, including outside its Asia-Pacific focus. He said Newcrest's $1 billion cash position left it ready to strike.

"We are continually looking," Mr Smith said. "In the past 12 months we have signed a couple of confidentiality agreements and looked pretty closely at a couple of opportunities, but none of those opportunities have pushed their way in front of our own projects."

Mr Smith said financial conditions and demand would likely keep gold above $1000 an ounce.

"We think all the preconditions are there to keep the gold price strong," he said. "On the commodity side we see the supply of gold dropping off over time ... and demand growing, particularly as China and India's middle class continue to grow.

"At a currency level, a lot of people are talking about inflationary pressure building. I think the global financial crisis has actually reawakened people's appreciation of gold as a legitimate part of a portfolio as far as risk profile is concerned."

Newcrest expects to have environmental approval from the NSW Government for its Cadia East expansion in the Cadia Valley "by Christmas, if not before".

Shareholders responded favourably to an increased dividend from 10c to 15c but argued that Newcrest's strong cash position meant it was in a position to pay even more. Newcrest shares fell 4 per cent to $32.46.

O A SIT-IN on access roads by tea-drinking, mahjong-playing, farmers has hit Sino Gold's production at its White Mountain mine in north-east China by up to 15,000 ounces, forcing the company to signal this year's output will be at the lower end of guidance. The protest is over water discharged from the mine.